You've no doubt heard it dozens of times before... "Don't put all your eggs in one basket." It's one of the most overused clichés in investing.

Editor's note: As Marc Chaikin recently said, we're in a time of "headline risk" in the markets... The S&P 500 Index is at record highs. But we've seen plenty of volatility in the markets recently. And the headlines in the financial media about tariffs, shake-ups in the federal government, and where interest rates are headed are stoking fear. So in this environment, it might not be as simple as just "buying the market" to make gains... As such, we're sharing an updated essay on this subject from Chaikin Analytics Editorial Director Vic Lederman. It published last year in the July 3 edition of the Chaikin PowerFeed. And as you'll see, the message is just as important today... It's Time to Look Beyond the S&P 500 By Vic Lederman, editorial director, Chaikin Analytics You've no doubt heard it dozens of times before... "Don't put all your eggs in one basket." It's one of the most overused clichés in investing. As you know, the phrase stresses the importance of diversification. In other words, spreading out risk across a group of investable assets. Sure, you can own real estate, stocks, bonds, gold, or cryptocurrency. But owning too much of one type of asset can overexpose you to big downside. After all, things don't always go as planned. So don't commit most – or all – of your money into one particular investment. When it comes to the stock market, advisers tend to suggest owning a basket of 20 to 30 stocks to be properly diversified. And many investors think that buying a "broad market" exchange-traded fund ("ETF") like the SPDR S&P 500 Fund (SPY) makes them diversified. After all, those funds hold a huge basket of stocks. But that basket isn't as diversified as most investors think... Recommended Links: 'Nvidia Investors May Hate Me for Saying This...' Last year, one Wall Street veteran warned we were in the early days of a massive shift playing out in U.S. stocks – one we've only seen a dozen times before, going all the way back to 1943 – and that it would soon impact every major stock you could think of, especially Nvidia... He was right. Now, he's sharing where the stock market's likely going next... what it could mean for your money in 2025... and the No. 1 investing strategy he's now recommending if you want the chance to protect and grow your wealth over the next five to 10 years. Elon Musk's Social Security Shock? New research reveals what Elon Musk could be planning in Washington, D.C. and how it may impact your money. In short, Musk has much bigger plans than simply "draining the swamp." His next big project could bring about nothing short of a revolution in our economy – it could change the way you file and pay your taxes... collect Social Security... and how you travel. To do it, Musk will likely use the same strategy he has applied in every other business. See the playbook here. Owning shares of an ETF like SPY seems like an easy way of owning a little bit of every company in the S&P 500 Index. One share of SPY today costs about $613. On the other hand, you would need more than $3,200 just to own one share in each of the 10 largest companies in the S&P 500. But the S&P 500 today is very different from how it was 20, 10, or even just five years ago... The constituent companies in the index have changed over the years. And so have the weightings. Before 2020, the top 10 constituents of the S&P 500 accounted for between 17% and 27% of the index's total weighting. But over the past few years, their contribution to the overall index has ballooned to historical proportions. By mid-2023, the top 10 stocks in the index accounted for about 30% of the overall weighting. Today, that weighting is up to roughly 36%. That's a huge concentration for the S&P 500 on the 10 largest companies. And that means ETFs tracking the S&P 500 are massively undiversified. While they still hold all 500 companies, more than a third of their funds are allocated to just 10 companies. The average year-to-date gain for all 10 companies comes to about 3%. Meanwhile, the S&P 500 has posted a roughly 4% move higher so far this year. And if the 10 biggest companies start becoming responsible for most of the index's gains, that can make some folks worried... That's because when the 10 largest constituents have accounted for the bulk of the S&P 500's gains in the past, the index itself hasn't done as well. For example, let's consider 2007. Back then, the top 10 companies were responsible for nearly 79% of the S&P 500's gains. But the index posted a gain of less than 4% that year. And when the top 10 companies were responsible for 59% of the gains in 2020, the index advanced about 16%. And there's 1999, just as the dot-com bubble was about to pop. That year, the top 10 companies were responsible for about 55% of the S&P 500's gains. Meanwhile, the index was up less than 20% for the year. Folks, I'm not saying the market can't move higher through the end of the year. It can. And as regular readers know, I'm still "bullish" on stocks overall for 2025. But the takeaway is clear... If you have all of your eggs in the S&P 500 basket, you're not diversified. In fact, your investments are around the highest levels of concentration in decades. So in this environment, that means looking beyond just the S&P 500. In fact, Marc recently went on camera to share a specific stock strategy related to all this... And it's one that he expects will crush the S&P 500 for years to come. As part of Marc's presentation, he named the exact group of stocks he's targeting in this current environment. It's where he thinks the biggest winners in the market will be. Get the full story for yourself by clicking here. Good investing, Vic Lederman Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 +0.17% 8 16 6 S&P 500 +0.24% 94 286 118 Nasdaq +0.03% 32 54 14 Small Caps -0.34% 422 1037 443 Bonds +0.12% Health Care +1.3% 6 32 22 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain somewhat Bearish. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Energy +3.35% Information Technology +2.7% Financial +1.62% Materials +1.47% Communication +1.41% Utilities +1.27% Staples +1.24% Discretionary +1.12% Real Estate +0.93% Industrials +0.74% Health Care +0.4% *  *  *  * Industry Focus Pharmaceuticals Services 1 26 18 Over the past 6 months, the Pharmaceuticals subsector (XPH) has underperformed the S&P 500 by -6.50%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #19 of 21 subsectors. Indicative Stocks ZVRA Zevra Therapeutics, NUVB Nuvation Bio Inc. EYPT EyePoint Pharmaceuti *  *  *  * Top Movers Gainers GRMN +12.64% MCHP +9.9% ADI +9.74% SMCI +7.97% DVN +7.71% Losers CE -21.46% AXON -16.42% PLTR -10.08% CDNS -8.78% ANET -6.43% *  *  *  * Earnings Report Earnings Surprises GRMN Garmin Ltd. Q4 $2.41 Beat by $0.39 RS Reliance, Inc. Q4 $2.22 Missed by $-0.51 ANSS ANSYS, Inc. Q4 $4.44 Beat by $0.58 PGR The Progressive Corporation Q4 $4.08 Beat by $0.52 AWK American Water Works Company, Inc. Q4 $1.22 Beat by $0.10 *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at STEVENMAGALLANES520.NIMS@BLOGGER.COM. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2025 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.